Go First will temporarily suspend flights on May 3 and 4 due to fund crunch
Mumbai:
Go First airline will stop flights on Wednesday and Thursday due to a severe funds shortage, people familiar with the matter said.
The carrier, owned by the Wadia Group, has also filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal in Delhi.
“It is an unfortunate decision (filing for voluntary insolvency resolution proceedings) but it had to be done to protect the interests of the company,” Go First chief executive Kaushik Khona told news agency PTI.
Mr Khona said they have grounded 28 aircraft, more than half of its fleet, after not getting engines from US-based Pratt & Whitney. This has directly led to a funds crunch as not having enough aircraft flying dries up earnings very fast in the aviation sector.
Some people who have booked Go First told NDTV they have received auto-generated emails about flight cancellations due to “operational issues”.
Go Air said it has told the government about the situation and will send a report to the regulator Directorate General of Civil Aviation (DGCA).
Go First employs over 5,000 people.
On its website, the airline said its fleet has 59 aircraft, of which 54 are A320 NEO and five are A320 CEO.
